Service tax charge by eateries under government scanner

The eateries will face the government action for charging service tax from their customers which is made optional by government in April.

The Union consumer affairs ministry has asked the Central Board of Direct Taxes (CBDT) to ask officials to take into account service charge collection by hotels and eateries while assessing their tax liabilities.”

The consumer affairs minister Ram Vilas Paswan said in his recent tweet, “In view of seriousness of issue, Deptt. of Consumer Affairs has written to CBDT to consider inclusion of service charge while assessing tax.”

The government took notice of complaints of people in which they ask to pay service charges which is not mandatory to pay. According to officials, it is unfair trade practice.